XRP Price Could Hit $100 if the XRPL Captures 1% of the Derivatives Market at $10T

XRP price has the potential to reach $100 if the XRP Ledger (XRPL) is able to capture 1% of the global derivatives market, amounting to $10 trillion.

The global derivatives market is estimated to exceed $1 quadrillion in value, driven by the extensive volume of traded instruments it encompasses. There have been projections of the XRPL capturing a portion of this volume. These projections sprang up after Ripple joined ISDA, a prominent trade association.

The Role of Improved Liquidity

Recall that reports from last August confirmed that Ripple had joined the International Swaps and Derivatives Association (ISDA), focusing on derivatives. The San Francisco-based payment company joined financial giants such as JPMorgan, Goldman Sachs, Citigroup and BlackRock. 

This triggered speculation that Ripple could be looking to make a mark on the derivatives market. With its use of the XRPL, such a mark could bring substantial volume to the network. The prospect of greater volume on XRPL bodes well for XRP, being the network’s native token. Notably, the greater the volume on the XRPL, the more interaction XRP commands.

Notable XDC developer Quincy Jones previously asserted that XRP’s price could be determined by liquidity on the XRPL. According to him, whatever instruments are issued on the network, market participants would need to use XRP to move them. This, he believes, could propel XRP to higher prices, including $100. However, he maintained that this is uncertain.

Jones mentioned that this liquidity could come from issuance of bonds, debt and other financial instruments on the XRPL, especially through tokenization. Another avenue that could lead to increased liquidity is the derivatives market. 

XRP Price Could Eye $100

Vandell Aljarrah, co-founder of Black Swan Capitalist, recently presented an assessment of what XRP price could be if the XRPL captures a small share of the derivatives market volume, say 1%. A 1% share would lead to a volume of $10 trillion. 

A simple calculation.

If 1% of 1 quadrillion dollars ($10 trillion) flowed through the XRP ledger with 100 billion XRP, each XRP token would be priced at $100.

Given:
– Total dollars: $10 trillion
– Total XRP: 100 billion XRP

Price per XRP = $10 trillion / 100 billion XRP =…

— Vandell | Black Swan Capitalist (@vandell33) June 2, 2024

His assessment considered XRP’s total max supply of 100 billion tokens. At this figure, he evaluated a $10 trillion volume to lead to a price of $100 per XRP token. However, this calculation assumes that this $10 trillion volume would be processed at once, which is highly unlikely.

XRP currently changes hands at $0.5203, up 1.11% over the last 24 hours. A $100 price from this level would require a 19,119% surge. Despite the audacious nature of this price target, analysts such as Javon Marks set loftier goals at $200. These prices would mark new ATHs for XRP, pushing its market cap to unimaginable levels.